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Qualcomm Acquires Patents From HP
Chip making giant Qualcomm Inc has purchased a patent portfolio from Hewlett-Packard Co, including those of Palm Inc and its iPaq smartphone, in a move that will bulk up HP’s offerings to handset makers and other licensees.
The portfolio comprises about 1,400 granted patents and pending patent applications from the United States and about 1,000 granted patents and pending patent applications from other countries, including China, England, Germany, Japan and South Korea.
The San Diego-based chipmaker did not say how much it paid for the patents.
The majority of Qualcomm’s profits come from licensing patents for its ubiquitous CDMA cellphone technology and other technology related to mobile devices. Instead of licensing patents individually, handset vendors, carriers and other licensees pay royalties to Qualcomm in return for access to a broad portfolio of intellectual property.
The patents bought from HP, announced in a release on Thursday, cover technologies that include fundamental mobile operating system techniques.
They include those that HP acquired when it bought Palm Inc, an early player in mobile devices, in 2010 and Bitfone in 2006. HP tablets made using Palm’s webOS operating system failed to catch on.
“There’s nothing left at Palm that HP could get any use out of so it’s better to sell the patents, which are always valuable to Qualcomm,” said Ed Snyder, an analyst with Charter Equity Research. “They have to keep that bucket full.”
The new patents will not lead to increased royalty rates for existing Qualcomm licensees, a Qualcomm spokeswoman said.
Last year, HP sold webOS, which it received as part of the $1.2 billion Palm acquisition, to South Korea’s LG Electronics Inc.
HP Goes All-In On Tablets
Hewlett-Packard garnered attention at Mobile World Congress show with its new Slate 7-inch tablet and then the sale of webOS assets, but the company is looking to put past distractions behind and will release more tablets in the future, the company said.
“You can expect going forward [to release] a family of products,” said Shane Wall, chief technology officer at Hewlett-Packard’s mobility group, in an interview at MWC. The mobility trade show is being held in Barcelona from Feb. 25 to 28.
The 7-inch tablet attracted a small crowd at the HP booth, with people lining up to photograph or use the device. The company effectively took a dive into the low-cost tablet and tried to differentiate its tablet by a lower price, and also features like a micro-SD card slot for expandable storage and dual-cameras. Google’s $199 Nexus 7 is priced higher and has a quad-core processor, a higher-resolution screen and Android 4.2, but HP believes it will sell a lot of the tablets at the $169 price.
“We’re obviously late,” Wall said. “We wanted to start and see how aggressive we can be on the low end.”
The Slate 7 also signifies HP’s re-entry into the consumer tablet market after a disastrous stint with the webOS mobile operating system, which it got with the acquisition of Palm in 2010 for $1.2 billion. The first webOS tablet, the TouchPad, was launched in 2011, but later discontinued along with webOS smartphones. Since then HP has released enterprise tablets such as ElitePad 900 with Windows 8, and now the company has adopted Android for consumer tablets.
LG Buys webOS From HP
Hewlett-Packard has sold some of the rights to its webOS mobile operating system to LG Electronics for use in smart TVs manufactured by the South Korean electronics giant.
LG has agreed to acquire the source code, webOS engineering team and other assets from HP, in a deal announced on Monday. LG will also license HP patents related to webOS and cloud technology, the companies said.
Financial terms of the deal weren’t disclosed.
HP acquired the mobile operating system, along with device maker Palm, in February 2010. HP used the OS on its short-lived TouchPad device, which debuted in mid-2011 then disappeared weeks later.
HP announced a new tablet, the US$169 Slate 7, on Sunday. The Slate 7 will run the Android operating system.
LG will lead the Open webOS and Enyo open-source projects as part of the deal, the company said. HP will retain ownership of all of Palm’s cloud computing assets, including source code, talent, infrastructure and contracts.
HP said it will also continue to support Palm users.
LG will use the technology to expand the Web capabilities of its smart TVs, said Sam Chang, LG vice president and general manager of innovation and Smart TV, in an interview.
LG bought the webOS assets in part for the engineering team, which includes user experience engineers, he said. The webOS engineers who remained at HP — the companies aren’t saying how many there are — are to join LG’s Silicon Valley labs.
HP Announces TouchPad 4G Deal
Hewlett-Packard announced it would release a 4G TouchPad tablet with upgraded hardware that will be available on AT&T’s wireless network.
The tablet will have a 1.5GHz processor, which is a change from the dual-core 1.2GHz Qualcomm Snapdragon processor available with older Wi-Fi-only TouchPad models that went on sale just two weeks ago.
Last August Qualcomm said that by the start of this year it would ship the dual-core Snapdragon QSD8672 chip that could run at clock speeds of up to 1.5GHz.
The TouchPad will have 32GB of internal storage, GPS and built-in AT&T wireless mobile broadband capabilities, HP said in a statement. Specific pricing and availability will be announced at a later date.
Wireless connectivity will be available through AT&T’s DataConnect mobile data plans for tablets or Wi-Fi hotspots around the country, HP said.
TouchPad users have expressed concerns about the device’s performance, especially the long load times for some applications. HP attributes the performance issue to software problems and said it will deliver an over-the-air software update that should resolve some performance problems.
Some buyers also were concerned about the TouchPad’s weight of about 1.6 pounds (740 grams), which is heavier than Apple’s iPad at 1.32 pounds. The TouchPad includes a 9.7-inch screen and comes with WebOS 3.0, which is also used in smartphones.